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According to recent reports, Johnson Controls (JCI) appears to be exploring the sale of its...

According to recent reports, Johnson Controls (JCI) appears to be exploring the sale of its automotive electronics business. Analysts at Morgan Stanley think that's a bad idea. Why? Because, when it comes to JCI, the sum of its parts are actually worth less than the whole, says Morgan. If split, each stub could trade at a lower multiple than current and peer levels, and that, boys and girls, would be destructive to shareholder value.
Comments (1)
  • WisAl
    , contributor
    Comments (7) | Send Message
     
    Of course splitting off the electronics business would be dumb. The other JCI automotive businesses and the automotive contacts involved in those businesses would be valuable to the JCI electronics business. Why would JCI consider this move?? Do they need the money to fund other boondoggles like EV batteries or solar cells? Seems like here in Milw, JCI is spending money for PR stuff like they are in fat city.
    15 Mar 2013, 01:16 PM Reply Like
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